Insurance Premium Tax (“IPT”) changes

Following the Summer 2015 Budget announcement the IPT rate will increase from 6% to 9.5%. The rate change will be effective from the 1st November 2015, and there will be a transitional (concessional) period which will end on 29th February 2016.

What this means in practice:

Quote acceptance date on or before 31st October 2015:

RATE

Deposit Premium

6.0%

Balance Premiums and/or future Instalment Payments

- invoiced on or before 29th February 2016

- invoiced on or after 1st March 2016

6.0%

9.5%

Mid Term Adjustments to cover / Endorsements

- invoiced on or before 29th February 2016

- invoiced on or after 1st March 2016

6.0%

9.5%

Quote acceptance date on or after 1st November 2015:

RATE

Deposit Premium

9.5%

Balance Premiums and/or future Instalment Payments

9.5%

Mid Term Adjustments to cover / Endorsements

9.5%

Should you have any queries in respect to this notice please contact BLP Customer Support Team on 020 7204 2424.